Sony Life to Extend Product Lineup Covering Nursing Care and Three Major Diseases
October 25, 2006
1. Nursing Care Protection Whole-Life Insurance with Differential Interest Dividends Every Five Years and Lump-Sum Nursing Care Policy Rider with Differential Interest Dividends Every Five Years
Reflecting increasing average age of its population, Japanese society is expected to experience an increase in the number of senior citizens who are bedridden or with acknowledgment syndrome and a growing number of people who require nursing care over extended periods of time. As it becomes increasingly difficult for families to provide adequate nursing care themselves, a national nursing care insurance system was implemented in April 2000.
According to a survey performed by the Japanese Institute of Life Insurance in the fiscal year 2004, however, 86% of respondents replied that they were anxious about the state of nursing care that they themselves might experience. Despite the implementation of the public nursing care insurance system, there seems to be quite a number of people who still have anxiety about potential economic difficulties and that self-reliant efforts are needed outside this system. In response to this situation and to enhance products lineups, Sony Life provides products to supplement the offerings of the public nursing care insurance system. To achieve this goal, the company will commence sales of nursing care protection whole-life insurance with differential interest dividends every five years, and a special policy rider—a lump-sum nursing care policy rider with differential interest dividends every five years.
With these new products, in the event that the policyholder dies without experiencing conditions requiring nursing care the amount that was not paid out as lump-sum nursing care payment or nursing care annuities is paid as a predefined death benefit. This arrangement should reduce a policyholder's sense that money has simply been wasted in the event that they never experience conditions requiring nursing care. At the same time, if a policyholder does experience predefined conditions requiring nursing care, both a lump-sum nursing care payment and nursing care annuities are provided, and nursing care annuities will continue to be provided as long as the condition persists, thereby guaranteeing them an income in such a case. The special policy rider contains a clause specifying a lump-sum nursing care payment if the policyholder experiences predefined conditions requiring nursing care.
According to the National Vital Statistics Report published in fiscal year 2004 by the Ministry of Health, Labour and Welfare, some 48%—nearly half—of Japanese citizens' deaths during that one-year period arose from three major diseases: cancer, acute myocardial infarctions and cerebral embolisms. When a person falls ill from one of these three major diseases, in addition to the medical treatment costs that arise, the patient frequently is unable to work for an extended period of time, interrupting their income. As a living benefit product to provide compensation to offset this loss in income when falling ill from one of the three major diseases, Sony Life will begin offering income protection insurance to cover three major diseases (non-profit). With this new product, if the insured party meets the predefined conditions of one of the three major diseases, a three major disease annuity is paid through the end of the policy period, as long as the insured party remains living.
Note: This is an English-language summary of a Japanese announcement made by Sony Life on October 25, 2006. The summary was prepared by Sony Financial Holdings Inc. solely for the convenience of non-Japanese readers.
